Social Security Errors That Can Cost You Thousands

Social Security Errors That Can Cost You Thousands - Social Security benefits are the bedrock of most Americans' retirement security. So it's well worth your time to learn how to get the most from these valuable benefits -- and avoid making mistakes in how you collect them.

To help you in this endeavor, I checked with two of the nation's foremost experts on Social Security: Andy Landis, author of "Social Security: The Inside Story," and Jon Peterson, who wrote "Social Security for Dummies." Between Andy, Jon and I, we came up with four common errors that you should avoid and that will help you optimize your Social Security benefits.

Mistake #1: Starting retirement benefits too early

Half of all Americans claim Social Security at age 62, the earliest possible age with the lowest monthly benefit. But most workers can significantly boost their lifetime payout of Social Security income by delaying the start of their monthly benefits. By how long? At least until age 66, and to age 70 if you can wait that long. For many married couples, this strategy will also improve the financial security of widows who, when their husband dies, will step up to the Social Security income their husband was receiving before he died.

I realize that many people lose their jobs and claim Social Security benefits early to make ends meet. But personally, I'd take any job that would pay me an amount equal to my Social Security benefits in order to reap the advantage of delaying my benefits as long as possible. I'd work at Wal-Mart (WMT), Starbucks (SBUX) or any other part-time job that pays enough to replace my Social Security benefits, while giving me enough free time to look for a better-paying position. In the long run, it's a financially smart move.

Mistake #2: Claiming Social Security now before program changes are made

"Some people think they must hurry to apply now, before Social Security runs out of money or before reforms make them ineligible," Landis said. "In fact, Social Security is projected to have the money it needs to operate at the current level for over two decades. And nearly all reforms on the table will apply to younger generations, not those currently retiring. So calm down and follow your best plan for claiming Social Security benefits."

Mistake #3: Not coordinating benefits for spouses

"Many people fail to coordinate claiming benefits with their spouse, and they miss opportunities for married couples to optimize their payouts," Peterson pointed out. These strategies usually entail starting Social Security benefits at different times for the husband and wife, whereas many married couples start their incomes at the same time.

One common strategy is to delay benefits as long as possible for the highest earner -- often the husband -- for the reasons described above. The wife might then claim benefits at an earlier age to have some retirement income coming in. Whether the optimal age to start the spouse's benefits is age 62 or age 66 (the official retirement age to collect full benefits) depends on your particular circumstances, such as the age difference and relative career earnings history of each spouse.

Mistake #4: Under-reporting of income by self-employed individuals

Many self-employed people under-report their taxable income for Social Security purposes, or use tax deductions to minimize their taxable income, on the assumption that paying any taxes is bad. But "This can hurt if you want Social Security benefits one day -- including disability benefits, in the case of unexpected illness or accident," Peterson said.

I know a number of self-employed people who've minimized their Social Security taxes over the years and are now reaching their retirement years with little or no retirement savings and severely reduced Social Security benefits. Now they regret this strategy and will need to keep working indefinitely.

According to one analysis, Social Security taxes are actually a good investment, so don't automatically think it's a good idea to avoid paying these taxes.

These are just a few of the mistakes that people routinely make in drawing Social Security. Stay tuned for future posts on how best to use the federal program.

It's well worth your time to learn all you can about Social Security benefits; it can result in increasing the lifetime payout for both you and your spouse by many thousands of dollars. ( CBS MoneyWatch )

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Lessons from the 'World's Ugliest Woman': 'Stop Staring and Start Learning'

 

Lessons from the 'World's Ugliest Woman': 'Stop Staring and Start Learning' - Lizzie Velasquez, author of Be Yourself, Be Beautiful.When she was in high school, Lizzie Velasquez was dubbed "The World's Ugliest Woman" in an 8-second-long YouTube video. Born with a medical condition so rare that just two other people in the world are thought to have it, Velasquez has no adipose tissue and cannot create muscle, store energy, or gain weight. She has zero percent body fat and weighs just 60 pounds.

In the comments on YouTube, viewers called her "it" and "monster" and encouraged her to kill herself. Instead, Velasquez set four goals: To become a motivational speaker, to publish a book, to graduate college, and to build a family and a career for herself.

Now 23 years old, she's been a motivational speaker for seven years and has given more than 200 workshops on embracing uniqueness, dealing with bullies, and overcoming obstacles. She's a senior majoring in Communications at Texas State University in San Marcos, where she lives with her best friend. Her first book, "Lizzie Beautiful," came out in 2010 and her second, "Be Beautiful, Be You," was published earlier this month.

"The stares are what I'm really dealing with in public right now," she told Dr. Drew Pinsky in an interview on CNN's Headline News this week. "But I think I'm getting to the point where… instead of sitting by and watching people judge me, I'm starting to want to go up to these people and introduce myself or give them my card and say, 'Hi, I'm Lizzie. Maybe you should stop staring and start learning'."

Velasquez was born in San Antonio, Texas; she was four weeks premature and weighed just 2 pounds, 10 ounces. "They told us they had no idea how she could have survived," her mother, Rita, 45, told the Daily Mail. "We had to buy doll's clothes from the toy store because baby clothes were too big." Doctors warned Rita and her husband, Lupe, that their oldest child would never be able to walk or talk, let alone live a normal life. (Her two younger siblings were not affected by the syndrome.)

Instead, she has thrived. Her internal organs, brain, and bones developed normally, though her body is tiny. Since she has no fatty tissue in which to store nutrients, she has to eat every 15 to 20 minutes to have enough energy to get through the day. One brown eye started clouding over when she was 4 years old, and now she's blind in that eye and has only limited sight in the other.

"Some days life doesn't make sense," she writes in "Be Beautiful, Be You." "You just have to change what you can, ask for help and pray about the rest."

She notes her triumphs and posts inspirational messages on Tumblr, and says that she's learned to embrace the things that make her unique. Instead of trying to retaliate against people who have made her feel badly, she sets goals for herself and pushes herself to succeed in spite of the haters. She's even reclaimed YouTube, video blogging about everything from bullying to hair-styling tips to staying positive.

"I feel really glad that I don't look like the celebrities out there that are so beautiful," she told Dr. Drew. "There's a lot of stereotypes attached to that." Not looking like a supermodel "gives people the opportunity to know you personally," she explains. "If they're willing to take that extra step they'll get to know the person you really are."

Of course, the horrible comments left on that old YouTube video stung (the video has since been removed, but Velasquez says she read every single comment). Now, she says, she understands that they're "just words."

"I'm human, and of course these things are going to hurt," she said. "Their judgements of me isn't who I am, and I'm not going to let these things define me."

"I didn't sink down to their level," she said in a follow-up video on YouTube last year. "Instead, I got my revenge through my accomplishments and determination. In the battle between the 'World's Ugliest Woman' video vs. me, I think I won." ( Secrets to Your Success )

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World's Smallest Bodybuilder Dies at Age 23

 

Geoff Caddick/PA Wire/AP PhotoThe world's tiniest bodybuilder, Aditya 'Romeo' Dev, died today at age 23.

World's Smallest Bodybuilder Dies at Age 23 - Early this morning, Dev was rushed to Satyam Hospital in Punjab, India, where doctors were unable to revive him.

"He was brought to the hospital in an unconscious state," Dr. Nerraj Chandanone at Satyam Hospital told The Daily Mail. "It was due to massive bleeding which had caused brain damage or aneurism bleeding. There were very rare chances of him surviving."

In 2008, Dev had been diagnosed with two brain aneurisms, a common symptom of being a dwarf. Doctors had warned Dev that at any time, without warning, his aneurism could burst and lead to a fatal stroke.

Dev's father, Anil Dev Sharma, 53, and mother, Rakesh Bala, 49, are devastated at the news of their son's death.

"He was absolutely fine until last night when he suddenly fell unconscious. We rushed him to the hospital and he fell into a coma, he was unconscious all night. Doctors said the nerve supplying blood to his brain had ruptured, causing his death," Sharma told local reporters. "It's a huge loss for our family, we will be grieving his death for the rest of our life. We were told by doctors many years ago that he may die at an early age. All these years we prayed for his long life."

Standing at only 2 feet, 9 inches and a mere 19 pounds, Dev told " Good Morning America" in 2009 the most he ever lifted was 10 pounds - about half his weight.

"From the very beginning I liked lifting the dumbbells and lifting weights," he said through a translator. "I used to watch wrestling when I was a small kid and that's how I got inspired."

His hard work paid off. The Guinness Book of World Records dubbed him the world's smallest body builder in 2006.

In 2009, Dev told "GMA" he considered himself to be the strongest dwarf in the world. He used a regimen that included 3.3-pound custom-designed dumbbells from his trainer and was able to bulk up to the size of an average 2-year-old.

His chest measurement was 20 inches and his exercise routine included aerobics and dance. Dev said he never let his size stop him from doing anything, even though his height was only about as tall as a baseball bat. ( ABC News Blogs )

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Islamic Society of Joplin Mosque Razed In Fire; 2nd This Summer

Islamic Society of Joplin Mosque Razed In Fire; 2nd This Summer — A mosque in southwest Missouri burned to the ground early Monday in the second fire to hit the Islamic center in little more than a month, and investigators spent the day combing through the wreckage searching for evidence of arson.

No injuries were reported, but the Islamic Society of Joplin's building was a total loss after the blaze, first reported at about 3:30 a.m., the Jasper County Sheriff's Office said. As of late Monday, nobody had been arrested in connection with the fire.

Investigators from the FBI, the Bureau of Alcohol Tobacco and Firearms and the Jasper County Sheriff's department were at the scene all day Monday, moving the rubble with a bulldozer and other equipment. A specially trained dog assisted.

Only remnants indicated a building had been there, including some stone pillars that were still standing and a few pieces of charred plywood loosely held up by a frame.

While investigators did their work, a small group of Muslims gathered for an evening prayer on the lawn of the destroyed building.

"This is what we stand for," said Dr. Ahmed Asadullah, a member of the Islamic Society of Joplin. "Freedom of religion. Freedom of speech."

It was the second time this summer investigators had been called to the Islamic center, located in a former church on the outskirts of Joplin. A fire reported around the same time on July 4 has been determined to be arson, but no charges have been filed. The FBI has released a video of a suspect caught on surveillance video and offered a $15,000 reward for information leading to an arrest in that fire.

Michael Kaste, special agent in charge of the Kansas City office of the FBI, said the investigation into Monday's fire was in the preliminary stages, and that about 30 people had been assigned to the investigation.

"Any act of violence to a house of worship is taken very seriously by law enforcement, and threatens the very core of the safety and security of our communities," Kaste said.

Kaste said it was too early to say if there was surveillance video available from the Monday fire. The Jasper County Sheriff's office said earlier Monday the video equipment had been destroyed. The FBI was encouraging anyone with information about either fire to call authorities.

"We just want to get the word out there to generate people to really come forward," he said.

Jasper County Sheriff Archie Dunn said patrols at the mosque had been stepped up since the July 4 fire at the mosque was determined to be arson.

Imam Lahmuddin, who leads the mosque and was in the building until late Sunday, said he was "sad and shocked" about the fire. He had been at the mosque since before dawn Monday, and remained there late in the evening.

"Maybe there is something we are supposed to learn from this," he said.

A Washington-based Muslim civil rights organization meanwhile called for more police protection at mosques and other houses of worship following the Joplin fire and a deadly attack at a Sikh temple in Wisconsin. The Council on American-Islamic Relations also offered a $10,000 reward for information leading to the arrest and conviction of whoever started the mosque fire.

About 50 families belong to the Islamic Society of Joplin, which opened in 2007 as a mosque and community center. The FBI led an investigation in 2008 when the mosque's sign was torched. That crime also remained unsolved.

Lahmuddin, who has lived in Joplin for about four years, said several people were at the center late Sunday. He said despite the attacks, the center's members have good relationships with residents and other churches. He said many are doctors at area hospitals. The center also served as a shelter and staging area for volunteers who came to help Joplin after the May 22 ripped through the city, killing 161 people.

On Sunday, a gunman killed six people at a Sikh temple in suburban Milwaukee. The imam said it was a cause of great concern that both faiths had seemingly come under attack.

Jill Michel, pastor of the South Joplin Christian Church, said several area churches have offered their churches to members of the Islamic Society if they need a place to gather. She said she and other faith leaders from the community had been at a dinner Saturday at the center, and that the community would rally around the center's members.

But, she said, the shooting at the Sikh temple in the Milwaukee area was also on her mind.

"I can't imagine driving up to my church and having it burned to the ground," Michel said. "I worry about what any of this sort of thing says about humanity." ( huffingtonpost.com )

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Jamaica braces for heavy rain as TS Ernesto nears

Jamaica braces for heavy rain as TS Ernesto nears — Fishermen near Jamaica's capital tied their wooden skiffs down along a rocky shore on Sunday as a poorly organized Tropical Storm Ernesto spun off the Caribbean country's southern coast on a path that may carry it across the Yucatan Peninsula and into the Gulf of Mexico.

Emergency officials said some eastern parts of the island were already being drenched by rain from Ernesto's outer bands and there was expected to be heavy rainfall and gusty winds over the island. Tropical storm conditions were expected by the afternoon from the rapidly moving storm, though U.S. forecasters said it was becoming less organized.

Fisherman Daniel Edwards bails his small wooden skiff out in Port Royal, a fishing village just outside of Kingston, Jamaica, Sunday Aug. 5, 2012. Tropical Storm Ernesto is pushing for a brush with Jamaica on Sunday. (AP photo/David McFadden)

Jamaica's emergency management agency urged people in flood-prone areas to be on alert and avoid flooded waterways and submerged roads. The government had earlier ordered fishermen on outlying cays to evacuate and move to the main island.

Prime Minister Portia Simpson Miller called on all Jamaicans to make the necessary preparations to ensure their safety.

"I urge you to especially consider the children, the sick, persons with disabilities, the elderly, and the most vulnerable in the society," said Simpson Miller.

Daniel Edwards, a dreadlocked fisherman in Port Royal, a small fishing village at the tip of a spit of land near Kingston's airport, said vigorous lightning lit up the sky over the sea late Saturday and early Sunday.

Bailing out his small wooden fishing boat next to a dilapidated wooden dock, Edwards said he wasn't overly concerned about the tropical storm's passage.

"It's not much of a muchness," said the veteran fisherman, decked out in rain gear.

Ernesto was threatening to dump 3 to 6 inches of rain on the Caribbean island of less than 3 million people before drenching the coasts of Honduras, Belize and Mexico, possibly as a hurricane. Forecasters said it might weaken into a storm over land and then re-emerge as a hurricane in the Gulf of Mexico late next week.

A tropical storm watch was in effect for the coast of Honduras, from the border with Nicaragua westward to Punta Castilla, and the island of Grand Cayman in the Cayman Islands. Showers and thunderstorms were also still possible over the Dominican Republic and Haiti, which share the Caribbean island of Hispaniola.

The U.S. National Hurricane Center in Miami said that Ernesto was centered about 205 miles (335 kilometers) south of Kingston, Jamaica, Sunday afternoon. It had maximum sustained winds near 50 mph (85 kph) and was moving swiftly westward at 23 mph (37 kph).

The storm wasn't expected to strengthen much during the day. But it was forecast to gradually begin gaining power over the next two days and possibly reach hurricane strength by Wednesday.

Many Jamaicans stocked up on bottled water, batteries and canned goods in the southern capital of Kingston.

Elsewhere, Tropical Storm Florence, which formed recently far out in the Atlantic, had stopped strengthening early Sunday, forecasters said, and was no longer expected to strengthen.

Florence had top sustained winds of 60 mph (95 kph) and is 770 miles (1,240 kilometers) west of the Cape Verde Islands. Forecasters said a gradual weakening of the storm was expected over the next couple of days. ( Associated Press )

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